"They are still living paycheck to paycheck, something
that's not captured in headline jobs numbers but is captured in
weak wage growth," Sozzi
said. "Bottom line here: Food and
gas price deflation have not yet caused the Wal-Mart shopper to
spend more during each trip."

And the implications could be disturbing for the U.S. economy,
writes Anne D'innocenzio at
The Associated Press.

Wal-Mart "is considered an economic bellwether because the
retailer accounts for nearly 10% of nonautomotive retail spending
in the U.S.," she writes.

Wal-Mart CEO Mike
Duke acknowledged the retailer's customers were struggling
because of the payroll tax hike
in an interview with Women's Wear Daily last year.

“They are middle-class Americans and those aspiring to join
the middle class,” Duke said. “Our customers are working hard to
adapt to the ‘new normal,’ but their confidence is still very
fragile. They are shopping for Christmas now and they don’t need
uncertainty over a tax increase."